No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.
That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.
LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic
No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.
That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.
Also that isnt what the graph illustrates.
LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic
People live in housing though, which is distinct from land, and the thing they’re claiming is static